Investing

7 Top Earnings to Watch for in the Week Ahead

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The earnings season for the first quarter is in high gear, and 24/7 Wall St. has put together a preview of the most prominent and anticipated quarterly reports that are scheduled for this week. We included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies even may change reporting dates as well.

Apple

After the closing bell on Monday, Apple Inc. (NASDAQ: AAPL) will share its most recent quarterly results. The consensus estimates call for earnings per share (EPS) of $2.00 and $51.97 billion in revenue. Although Merrill Lynch and Oppenheimer are not going completely bearish on Apple, they still think that these earnings could be relatively soft.

Merrill Lynch does expect Apple to increase its share repurchase authorization along with this report, while Oppenheimer sees Apple’s substantial capital return program offsetting the potential downside from slowing iPhone sales growth in coming years.

Shares traded at $105.68 on the close on Friday, in a 52-week range of $92.00 to $134.54. The stock has a consensus analyst price target of $133.87.


AT&T

Set to share its latest quarterly earnings late on Tuesday is AT&T Inc. (NYSE: T). The consensus estimates call for $1.72 in EPS on $43.96 billion in revenue. This company had an outstanding first quarter from a stock price standpoint and could be poised to go higher.

With its shares trading at a very cheap 12.5 times estimated 2016 earnings, AT&T continues to expand its user base, and strong product introductions from smartphone vendors have not only driven traffic but increased device financing plans. But note that some top Wall Street analysts have lowered first-quarter postpaid net addition estimates substantially.

Shares were at $38.07 on Friday’s close, in a 52-week trading range of $30.97 to $39.72. The consensus price target is $39.36.

Boeing

Look for Boeing Co. (NYSE: BA) to report its first-quarter results first thing Wednesday. The consensus estimates call for EPS of $1.83 and $21.44 billion in revenue. Top Wall Street analysts have increased confidence in continuing good demand, and they note that the company has made announcements in the past that support the thesis that productivity and margins will continue to improve.

787 execution is good as the company works through the backlog, and cash flow looks to be strong with 787 deliveries and C-17 orders. Some Wall Street analysts also point to low oil prices as a bullish indicator for the top carriers that are Boeing’s big customers.

Shares were changing hands at $131.05 on Friday’s close. The consensus price target is $138.47, and the stock has a 52-week trading range of $102.10 to $150.59.

Facebook

Later on Wednesday, Facebook Inc. (NASDAQ: FB) is scheduled to report its first-quarter results. The consensus estimates call for $0.62 in EPS and revenue of $5.25 billion. The huge social media leader has posted gigantic numbers that truly blew away most of Wall Street.

Revenues for the December quarter that were 10% ahead of many Wall Street estimates. Most Wall Street analysts point to the fact that Facebook remains the top beneficiary of the adoption of mobile internet trends, and Wedbush predicts the company once again beats estimates, citing the mobile advertising growth and overall innovation at the company.

Facebook shares closed at $110.56 on Friday. The consensus price target is $135.30. The 52-week trading range is $72.00 to $117.59.

Ford

Ford Motor Co. (NYSE: F) is expected to share its latest quarterly earnings Thursday morning. The consensus estimates call for $0.46 in EPS and $35.76 billion in revenue. The company has reshaped its product line in recent years, and sales have been outstanding. Ford posted record North American results last year. With sales booming not only in the United States but in China, and six new models being introduced in Russia, the company is expanding market share, while maintaining a competitive pricing structure.

Shares were at $13.61 on Friday’s close, in a 52-week range of $10.44 to $16.10. The consensus price target is $15.60.


Amazon

After trading concludes on Thursday, Amazon.com Inc. (NASDAQ: AMZN) is due to report its first-quarter results. The consensus estimates call for EPS of $0.58 and $27.99 billion in revenue. Not only is this company the absolute leader in online retail, it is a dominant player in cloud storage business as well, but it missed estimates badly and got hit hard in January.

Wedbush expects the company to beat current estimates but cautions it could announce an earnings reset for 2016 and 2017. Merrill Lynch sees the company expanding and moving up the enterprise information value chain and addressing a larger total available market.

Shares of Amazon were changing hands at $620.50 as last week’s trading came to a close. The consensus price target is $733.39, and the stock has a 52-week range of $414.55 to $696.44.

Exxon

Look for the latest quarterly earnings report from Exxon Mobil Corp. (NYSE: XOM) early Friday. The consensus estimates call for $0.31 in EPS on $45.31 billion in revenue. This stock remains one of Merrill Lynch’s top ten picks for 2016.

The firm is very positive long-term, as the overall corporate strength of the massive integrated giant plays a significant part in the company’s usually solid earnings reporting pattern and in maintaining dividend coverage. Also, the company’s global downstream chemical segment plays a huge part for Exxon, a part that many on Wall Street may not fully appreciate.

Shares were at $87.53 on Friday’s close, in a 52-week trading range of $66.55 to $90.09. The consensus price target is $82.07.

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